State Audit Review

Bullet points as printed in the Pioneer Press
The city should consider opening up a competitive request-for-proposal process for things such as engineering services to "demonstrate impartiality."
It should provide more oversight of employee-reimbursement funds such as mileage to ensure information is recorded accurately.
It should do more monitoring of the city administrator's and finance director's time spent working and revise if necessary.
Full story here.
Audit Report Here

Centerville State Audit Release

The Nine Month Review of the Minnesota State Auditor's office will be released to the public:

Centerville City Hall
Wednesday, August 26
6:30 p.m.

All residents are welcome to attend.

Thank you to the 600+ residents that signed the petition and thank you to everyone that has supported the audit effort.

View agenda packet HERE

Check Out Recent Findings Spurred On By The Minnesota State Audit of Centerville

The Office of the State Auditor became aware of concerns regarding the City of Maple Lake’s (“City”) employment of John Meyer as its Economic Development Coordinator. Specifically, a newspaper article stated that Mr. Meyer was working for the City while working full-time as the City of Centerville’s Finance Director and full-time with the architectural and engineering firm Lightowler Johnson Associates. LINK HERE

Newspaper article mentioned above Star Tribune 5/2/2009
The Citizen 4/15/2009 Here

Previous Press Here

Quote Centerville Mayor Mary Capra
“Mr. Meyer is a professional and he would never compromise any of our grants,” she said. “It’s unfortunate that a small group out there is trying to find problems that are not problems.”
Quad Press 4/21/2009

Zumbro House Calls it Quits

According to the Eyewitness News broadcast this evening, Zumbro House will not open in Centerville after all.
"After protests from Centerville residents, the owner of a company that runs foster care homes for teens with serious behavioral and sexual issues says he won't open a facility in the northeast Metro suburb."

The Citizen 8/19/2008 Here
Editor's Viewpoint Here

KSTP TV - Minneapolis and St. Paul - Controversial Foster Home Pulls Out of Centerville

Anonymous Tip

Did you know that a "Zumbro House" is moving into Hunter's Crossing. Take a look at the link and educate yourself. These people were apparently given a permit to move into a foreclosed house. It's all apparently happening on the down low. People are finding out and are planning to attend the city council meeting tonight at 6:30 at the city hall.
http://www.zumbrohouse.com/whoweserve.html

UPDATE!
Zumbro House prior to the news cast.
Archive Zumbrohouse/whoweserve HERE
(Original text before sterilization) Why the curious and sudden change?

Verbatim prior text follows:
Serving individuals with high behavior needs, such as:
Sexual offending/acting-out
Self-abusive behavior
Physically aggressive behavior
Elopement
Destructive behavior
Anger management problems
Compulsive behavior
Defiant/oppositional behavior
When is Zumbro House Placement Appropriate?
Is the current caregiver unable to handle the overriding behavioral issues of the individual?
Is the behavior causing physical or emotional harm to the individual or others?
Does the person require a high level of supervision and staffing support in order to maintain the safety of the individual or others?
Is the individual's level of functioning compromised due to the behavior?
Has there been minimal pervasive improvement with other interventions such as psychiatric hospitalizations, crisis placements or outpatient treatment?

Here is the latest news report from Fox 9 news.



The current license does not allow level one or two sex offenders. For citizens of Centerville there are still a lot of unanswered questions, plus a second corporate foster home going through the application process just a few blocks away.
Link Here
Minneapolis Forum Here

Is Potential Use of Land a Reason to Get the Shaft?

It appears that two residences on Old Mill Road have not ended their court dispute with the City of Centerville regarding their $90,000 special assessments. Currently, they are awaiting a hearing in Anoka County scheduled the afternoon of August 24th.
A little history;
May 23, 2007
"In a letter addressed to the city, the Fruths wrote, "that proposal put forth by Jeff and Laura Hanzel [sic] is solely for their financial benefit and does not, in any way, serve to benefit us, our property, or the City . It is our intention to exercise each and every legal right available to us to prevent this ridiculous cost to ourselves." A nearly identical letter was sent to the city by Fred Fischer, who also opposes the project.
At the public hearing, Peter Fruth told council and staff that "we cannot afford a $100,000 assessment. After Peter spoke, Cathy, visibly upset, told council and staff that "we're not gaining a thing . We are being pressured to pay for something for [Hanzals'] development which I don't think we should have to pay for."
Although the Fruths' and Fishers' properties are currently zoned as Rural Residential, which stipulates a density of one lot per ten acres, staff pointed out that it is almost guaranteed that the zoning will change as the city moves through its Comprehensive Plan revision process this year and next, allowing them to subdivide.
"I've got no beef with Jeff Hanzal," Fisher said, "but my problem is that he wants to make money and he's doing it on my back. "He's the one selling the lots; let him pay for the road," he added. After the public hearing was closed, the council passed a resolution ordering the Old Mill Road improvements to go forward.
Prior to that vote, Council Member Lee, turning to look Peter and Cathy Fruth in the eyes, said "As much as it pains me to see old time residents feel like they have to move, this project was going to happen in a year anyway, and be more expensive."
"[However], if I were in your shoes, I'd feel like I was getting the shaft, too," he added.
Council Member Tom Lee argued that the size of the Fruths' property was part of the reason their assessment was so high. "Because your property has the potential to be many lots, the assessment is what it is," he said.
The Citizen

July 10, 2008
Only one person spoke at the hearing, Jeff Carroll, a lawyer representing Old Mill Road neighbors Cathy Fruth and Fred Fischer, but he said both his clients were very dissatisfied with the bills they had been sent.
He questioned the assessments, which he said indicated the property values would increase by $100,000 apiece, from a current estimated value of $375,000.
“The current taxes are over $5,000,” said Carroll. “This is going to increase their taxes to $14,000 a year, an increase of 140 percent, which is incredibly substantial.”
Fruth had appeared before Centerville City Council at a previous meeting, at which she claimed her drive had been left four feet above street level since the road improvements had been made.
She was offered two options to remedy the situation by the city engineer at the July 10 meeting, but explained she would need further time to decide which course of action she wished to pursue.
The City Council voted to delay the passing of a resolution on Old Mill Road residents’ special assessments until a later meeting when Fruth’s situation had been resolved.
The Citizen

The Fruth and Fisher families are considering taking their case all the way to the Minnesota Supreme Court if unsuccessful in Anoka County. Ms. Fruth questions why the City of Centerville is insisting her property is potentially worth over one million dollars while the Anoka County property tax statement shows her property value has dropped approximately $50,000 since this all started two years ago. Ms. Fruth also is willing to sell to any developer willing to pay the price the current council claims the property is worth.
Update:
As of today, the driveway situation has not been resolved between Ms. Fruth and the City of Centerville and both properties are still zoned Rural Residential (one lot per ten acres)

Strategic Lawsuits Against Public Participation

Minnesota has ANTI-SLAPP laws on the books.
What is a SLAPP?
Retaliatory lawsuits intended to silence, intimidate, or punish those who have used public forums to speak, petition, or otherwise move for government action on an issue.
Link Here

Senior Citizen Arraigned on Criminal Charges

A Centerville senior citizen was arraigned July 22nd in Anoka County on four criminal counts of ordinance violation. This resident was an active participant in obtaining petition signatures for the State audit of the City of Centerville. She was also vocal in the disagreement with City officials on the 2009 road project (Link Here) in which the City scaled back the scope and cost from the initial $7.8 million to approximately $4.5 million. Last but not least, she was also involved with a dispute regarding a variance the City approved for development on her street. Here and Here

This senior citizen is now being charged with violating the Centerville right of way/easement ordinance 93.17. One violation is due to two bricks placed in the ground (see photo above) to protect a sprinkler head from being damaged at the edge of the property. Meanwhile, there are 80+ other properties in town with same or similar easement violations that the city officials have chosen to not pursue.
One interesting example is a mailbox violation (same ordinance 93.03) in which a developer also former planning and zoning member is in violation. The matter was brought to the attention of the City Administrator Dallas Larson and here is his response Feb. 2008. As of today, the mailboxes still stand but not in the required clusters of no less than 4 no more than 6... Right next door to the alleged criminal senior citizen!
Currently there are no charges pending against the two year old mailbox violation.
Click images to enlarge
Other criminal counts the senior is facing pertain to ordinance 150.01 bringing in more than 10 yards of fill, altering the drainage plan for the property and constructing retaining walls without obtaining a permit.
Although the resident has obtained the necessary permits from the Rice Creek Watershed District approving the recent work our City officials have decided to move forward with criminal charges paying City Attorney Kurt Glaser a minimum of 95 (taxpayer) dollars per hour to prosecute.
Neighbors have verified that the retaining walls in question have been there for years and wonder why the City is now pursuing criminal charges.
Mayor Mary Capra is on record stating that the City of Centerville enforces ordinances on a complaint basis. City Administrator Dallas Larson has stated that the matter has been referred to the City Attorney and it has been left to the attorney to resolve the issues.

Is this complaint based/selective enforcement or is this the price citizens will pay for exercising their Constitutional Rights by walking petitions or speaking out at public meetings?

Wikipedia;
Selective enforcement is the ability that executors of the law (such as police officers or administrative agencies, in some cases) have to arbitrarily select choice individuals as being outside of the law. The use of enforcement discretion in an arbitrary way is referred to as selective enforcement or selective prosecution.

Historically, selective enforcement is recognized as a sign of tyranny, and an abuse of power, because it violates Rule of Law, allowing men to apply justice only when they choose. Aside from this being inherently unjust, it almost inevitably must lead to favoritism and extortion, with those empowered to choose being able to help their friends, take bribes, and threaten those they desire favors from.

Regarding Cannon Falls History Repeating Itself in Centerville

A blast from the past...
One resident in the know understands how City government works, or doesn't.
Click Here

Anonymous said...

There are two residents on Old Mill Road (10 acre parcels) that have been assessed $90,000 each for "best use of land" and "potential value" while Linda Broussard-Vickers sitting council member (80 some acres) has been assessed NOTHING!
Meanwhile, these property values have dropped dramatically!

The Anoka County court cases are still being litigated

Another resident on Peltier Lake Drive being assessed over $10,000 had the case thrown out on a technicality... Filing the wrong paperwork!

Link Here

Is there is a reason that the State audit has not been revealed?
Could Cannon Falls history be repeating itself here in Centerville?

July 8, 2009 11:19 PM

City Council Meeting 6/10/2009

Should the opinion of a "professional" (City obtained) Appraiser trump the findings of the Anoka County Assessor? Apparently, here in Centerville it does so by a unanimous City Council vote! The business was assessed more than the entire worth of the property!
June 10, 2009 City Council minutes taken directly from the Centerville City website.

City Attorney Glaser stated that he had reviewed all the numbers with City Engineer Statz and City Administrator Larson and conducted due diligence He had also hired a professional appraiser He stated there was one exception a previous assessment to the property in approximately 1990. At that time the entire parcel was owned by Sheehy and fourths to they sold three Lloyd Drilling Later the City purchased the Lloyd Drillings portion The total assessment was $82,000 He suggested that the Council be conservative and credit fourth or 500 which was paid on the old Sheehy approximately one $20,000 assessment This would make Sheehys assessment approximately $380,000.

Patrick Lee OHalloran, Sheehys attorney stated that Sheehy objection is two fold.

1. According to the Minnesota Supreme Court and the statutes all you can assess is an increase in the property value from the improvements. $316,000 is the entire property value according to the County Assessor

2 All benefiting properties should be assessed In this case no other property owners who benefited have been assessed

MrLee O Halloran stated that when Sheehy owned the entire parcel they were assessed and paid for the assessment Therefore they already paid for the same improvements and do not have to pay for them twice He continued that the east side of property borders Lino Lakes and Lino Lakes benefited as much as Sheehy The total amount received from Lino Lakes was $150,000 for the same amount of frontage. Mr Lee OHalloran stated that only a small section of their property needed improvement Sheehy would like Centerville to consider $154,000 the real offer for the as assessment, they believe is more than fair.

Adopting the Assessment Roll for the 21St Avenue Backage Road Improvements
Council member Lee stated that he is in agreement with the City Staff about the expected increase in value Council member Fehrenbacher stated that he agrees with staff recommendation on the $400,000 number City Attorney Glaser stated that when a party appeals an assessment to the District Court the Court does not decide what the number will be If it believes the City number is wrong it will be sent back to the City He noted that litigation could cost approximately $20,000 Councilmember Broussard Vickers stated that she supports the findings of the appraiser, City Administrator Larson, City Engineer Statz and City Attorney Glaser. Mayor Capra stated that she disagrees with the $154,000 number proposed by Sheehy She stated that she would agree to decrease the proposed assessment amount by the $20,500 credit for the earlier assessment
Motion by Council Member Broussard Vickers seconded by Council Member Paar to approve Res Adopting the Assessment Roll for the 21 St Avenue Backage Road Improvements setting the Sheehy assessment at $379,000. All in favor Motion carried unanimously.
Link Quad Press Story Here

Did Centerville Have a Full Time Finance Director?

While not illegal, Centerville's finance chief also worked for other cities and a private firm.

Meyer was the town's finance director, with a salary of $83,000, until he resigned from the suburban community of 3,800 earlier this year. And he had a full-time job at an architectural and engineering firm based in Fargo, N.D.

There's more: Meyer was on the payroll one day a week in Maple Lake, earning about $42,000 last year, city officials said. Plus he had a consulting business, assisting small towns such as Frazee and Canby, according to his website.

City Administrator Larson credited Meyer with bringing in $3 million in grants since the fall of 2004, when he became finance director. He said the controversy over his employment is a "nonstory" prompted by a group of disgruntled citizens.

But his marathon moonlighting is very unusual, said Robin Roland, immediate past president of the Minnesota Government Finance Officers Association. Roland, who has been active in the 600-member organization for 15 years, said she didn't know any other finance director with two jobs, much less three.
"We have a code of ethics that basically says if we work for a city, we work for the city," said Roland, Farmington's finance director. "We don't do three or four different things."

Full Story Here
Star Tribune
05/02/2009
Jean Hopfensperger

Exit Question:
Will Mary Capra and current Council take any action?

What is Happening With The State Audit of Centerville?

Here is what we know today. (Re post of April 1st)

The audit was completed between November and January.
Centerville will be charged approximately $60 per hour for the investigation. We do not know how many hours will be billed.

The audit is currently under review.
Centerville will not be charged for the review process.

The review completion is done in multiple steps.
The audit of Cambridge was not released for nine months.
Link to audit Here
At this time we are waiting for a phone call from the State and have no inside information as to the approximate completion date.

Per Minnesota Statute 6.715
Data that support the conclusions of the report and that the state auditor reasonably believes will result in litigation are protected nonpublic data or confidential data on individuals, until the litigation has been completed or is no longer being actively pursued.
Link to statute Here

Whether the formal proceedings against a Centerville business is related to the audit or simply coincidence is unknown to us at this time.

CENTERSTONE TITLE LLC
Respondent created and controlled sham affiliated business arrangements; and provided other forms of kickbacks to referral partners in exchange for the referral of title insurance business.
Link to findings Here

Thank you to everyone that has supported the State audit. We will continue to do our best to keep you informed of our findings.

Council Members Moving Forward With Finance Director Replacement

While many question the necessity of hiring a new full time replacement, the council will conduct the first round of candidate interviews Saturday, May 9.

“I’m not aware of anything [concerning Meyer’s job performance] that would raise any huge red flags,” Larson told The Citizen. “If he was resourceful enough to generate a few dollars on the side in a consulting business, that’s fine, as long as it didn’t affect his job here.”
Full Story Here
Mr. Larson was the supervisor of our last finance director and as such, isn't he obligated to investigate all information available? Maybe Centerville can survive with only a part-time director or hire a consulting firm on an hourly basis.

"City Administrator Dallas Larson and Mayor Mary Capra confirmed that Meyer concurrently completed work for other cities, but Larson said none of the work Meyer did outside of Centerville presented a conflict."

Read More About Work With Other Cities Here

"Capra said Meyer was a good employee who brought in more than $3 million in grant funds for the city, and that resident inquiries into Meyer’s personal file are costing the city tax dollars because of attorney fees."
Full Story Here

What Capra does not mention is how much money Centerville must spend in matching funds for these grant dollars. She also does not state why the City is spending money for attorney fees in this matter. Why not allow the residents to view the personal file (attendance records) of a former or current City employee that is known to work with other cities?

"Larson said the blog has “nothing good to say about Centerville, ever.” (Link Above)
The City officials have always been encouraged to contact the blog regarding information they consider incorrect.

How Does Centerville Compare With Other Cities?

Comparing Property Taxes on Average Value Homes in 117 Metropolitan Communities, 2007-2008
The link shows how well our City officials have been managing your money. The nearby City of Columbus with similar population ranked 94 while Centerville remained at number 3.
Bear in mind that since the chart was created, our officials have been busy with:

Increasing Centerville taxes by 6.6%
(The highest allowable by law)
Imposing 4+ million dollar street improvement assessments.
(Still no dedicated road fund)
Chasing a downtown dream and placing bets.
(Approving hundreds of thousands in engineering fees)
Link Here
Link Here
Creating a"Fire Protection Fee" for those without City water.
(Not considered a new tax)

Read confirmation email from the City Administrator below.

Monday, January 5, 2009 9:21 AM

From:"Dallas Larson"

To: Centervilleblog@yahoo.com

Your blog states that the city water charge of $84 will apply to all residents. The charge at $80 is already on the bill of the majority of residents (all who are connected to city water) and for them only the 5% increase will apply. This fee will be new to those that are not connected
to city water, but receive benefits due to the fire insurance rating.

Dallas Larson, Administrator
City of Centerville
651-429-3232

City Council/Finance Director History Circa 2005

Click the above images to enlarge and read the approved City minutes.

Mary Capra, Tom Lee, Jeff Paar and Linda Broussard-Vickers all questioned his job performance (section two) in January 2005. A full six months before he accepted a position with Lightowler, Johnson and Associates. Today they claim there has never been a problem?

“I’m not aware of anything [concerning Meyer’s job performance] that would raise any huge red flags,” Larson told The Citizen. “If he was resourceful enough to generate a few dollars on the side in a consulting business, that’s fine, as long as it didn’t affect his job here.”
Several council members, including Tom Lee and Mayor Mary Capra, say they were aware that Meyer had a consulting business, a fact that Lee says was disclosed at the time of Meyer’s interview in 2004.
The Citizen


For a little history (section three) on our City Administrator
CLICK HERE

The Citizen 4/15/2009

Does Centerville Need A Full-Time Finance Director?
By Deb Barnes

The Centerville City Council is actively engaged in a search to replace former city finance director John Meyer, who retired last January for health reasons. But some Centerville citizens question whether the city really needs a full-time finance director.
Since Meyer’s departure, the city has relied on intermittent assistance from Abdo, Eick & Meyers, the city’s auditors, to keep its financial wheels turning.
Centerville is counting on cost savings realized by Meyer’s departure to help whittle its budget in 2009; even after accounting for the costs of temporary help until a new finance director is hired, it appears the city will be $22,000 ahead. But although the city may have been paying for a full-time finance director, Centerville resident Stephanie Blomseth wonders if it had one.

Records show that while Meyer was employed by the city of Centerville he actively pursued other work, both as a consultant to Minnesota municipalities and as a part-time employee of an engineering consulting firm in North Dakota.
Lightowler Johnson Associates in Fargo, N.D. lists Meyer as an employee on the company’s Web site. Meyer has worked up to 35 hours per week as Project Developer/ Finance Advisor for the architectural/engineering firm since July 1, 2005, sources say.

“I’m not aware of anything [concerning Meyer’s job performance] that would raise any huge red flags,” Larson told The Citizen. “If he was resourceful enough to generate a few dollars on the side in a consulting business, that’s fine, as long as it didn’t affect his job here.”
Several council members, including Tom Lee and Mayor Mary Capra, say they were aware that Meyer had a consulting business, a fact that Lee says was disclosed at the time of Meyer’s interview in 2004. But how much outside consulting he did, or whether Meyer arrived at City Hall “refreshed and ready for work” as the Personnel Policy requires, has apparently never been discussed.
Meyer did not return a phone call in time for this story.

To be fair, the above is only part of a much lengthier, detailed story. Of course, we chose to shorten it up for the blog. To read the entire article
Link HERE

2009 Street Improvement

Bid Opening April 14, 2009 - 10:00 a.m.
Apparent Low Bidder to Apparent High Bidder

Rum River Contracting $1,237,968.09
Forest Lake Contracting $1,337,737.25
Knife River Corporation $1,358,740.30
Dresel Contracting, Inc. $1,368,097.75
Tower Asphalt, Inc. $1,404,004.00
T.A. Schifsky & Sons, Inc. $1,579,013.99

The new bid amounts are apparently much lower than expected. Will the savings (approximately $300,000) be passed on to our assessed residents?

Centerville Property Values Drop 10.3 Percent Over Year

Taxes are payable in 2010
by Loretta Harding
4/14/2009
CENTERVILLE — The Centerville City Council heard appeals to the payable 2010 property tax assessments prior to the April 8 meeting at City Hall.

As required by state law, at least three council members became board certified to address property owners who take issue with valuation and classification of their property at the annual Board of Assessment Appeal and Equalization Hearing. City Assessor Ken Tolzmann attended the meeting to answer questions, and Diana Stellmach represented Anoka County, as required by state law.

Assessors in Minnesota use real estate sales in a given community between October of 2007 and September of 2008 to determine current market value of homesteaded residential property. Qualified sales for purposes of market valuation don't include bank sales, foreclosures or sales to relatives.
Full Story Here

Do City Officials Care When the Employment Policy is Violated?

Apparently they all have turned a blind eye to it here in Centerville! Our last finance director John Meyer, split town (citing health issues) in the midst of a State audit and left us high and dry on the 2009 Centerville budget. It has come to our attention that the Centerville City officials (including Mayor Mary Capra) knew our former finance director was working with other cities at the same time he was employed with the City of Centerville. They also knew he owned his own business upon choosing to hire him in 2005. Mr. Meyer did all this with their knowledge even though it most likely was a violation of Centerville's employment policy.
See actual policy documentation above.

To learn more about his activities while working for us,
CLICK HERE.

Maybe it's time to question what is going on behind the walls of City Hall during working hours and the judgment of our elected officials. To some, this appears to be further evidence of selective enforcement. To others this is a violation of public trust and reckless use of taxpayer dollars.

Suggestions Being Accepted for Naming the New Road

The City Council is looking for resident suggestions for naming the "Backage Road" located 20th Avenue and 21st Avenue. We will be accepting names via email at tbender@centervillemn.com until May 31, 2009.